Yellen the Fed skank just said "Fed could consider new debt type at end of recession". Hmmm. I wonder what effect that would have on the bond markets. Any ideas?
One should question.... Who will buy.... 50/100 debt ? At extremely low rates .... .......................................................................... Usually when this type of issuance happens it is a legal issue to cut short term needs..... And is a last resort type of move.... .............................................................................. Obviously the currency comes into question by its former cheerleaders....
Forget the affects on the bond market. If it occurs, using rule of 72, gov't will be "providing" cradle to grave "security". And if you are lucky, upon maturity, you'll be able to scoop up a nice low-end REO.
It's "better" when IBM or KO talk about doing ultra-long term bond issuance. And yes, it tends to occur at longer-term tops in the bond market.